Market Outlook

The candlestick has been forming a doji formation indicating that there could be a bullish candlestick today.

The index traded lower in the daily timeframe, however on a longer timeframe, this appears to be on an upward trend.

The index appears to have hold from its previous support levels and has started to rebound.

The index closed slightly higher at 6,520.44 settling near 6,500.

The index closed at 6,510.67, down -1.25% and is performing below its 50-d MA.

The index continues to move in a range as prices fall back to 6,560.

Participants may be on wait-and-see mode, if Thursday’s trades would mimic previous session’s MOC-boost.

Sentiment might drift to Wall Street’s overnight weakness (DJIA -0.69%, Nasdaq Comp. -1.26%) as fund managers trail the progress of US debt ceiling negotiations.

After a huge pullback coming from 6,700 levels, the index is trying to regain its previous price levels by overtaking bear candles.

Mixed tones might greet Monday’s trades, as investors sift through headlines on the approval of debt ceiling cap in the US, as well as those at home.

Higher planes are in store for local equities, on prospects for status quo on domestic interest rates & possible consideration for cuts in reserve requirement.

Sessions might be range-bound, as participants sift through latest retail sales growth in the US against economic growth outlook.

Higher sessions are seen, as participants position for possible status quo from local monetary authorities from Thursday’s policy meeting.

This could be a confirmation that the index will we ranging down back to

Attention will be on the local central bank’s policy meeting this week, as participants weigh possibilities for a status quo, or parallel rate hike move from the Fed.